Yen weakened because demand of safe-haven assets decreased and pound rose as investors focused on UK referendum this week. Latest poll showed that support to stay with European Union increased significantly.
Japan May trade balance was released with 270 billion yen surplus, higher than expected. Meanwhile, export fell 11.3%.
Technical Analysis:
USD/JPY is testing Fibonacci resistance area at 104.624-105.296. Wait for bearish signal confirmation within the resistance area as signal to go short with 104.208 as target and 103.535 in extension.
Note that 20 MA has crossed above 50 MA on hourly chart. Hourly stochastic and CCI are oversold. Be careful if this condition is followed by a break above 105.296 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 105.775-106.385.


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